Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that former broker/adviser Brett Briggs (CRD # 1226255) was recently barred from the securities industry and fined by FINRA’s Department of Enforcement. The sanctions occurred as a result of an investigation into his failure to supervise.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Briggs.
Registration Background for Brett Briggs
Mr. Briggs first became registered in the securities industry in 1984. He is currently registered with Los Angeles, CA based Western International Securities, Inc. (CRD # 39262). His prior registrations include Financial West Group (CRD # 16668) from January 2008 to August 2017, The Shemano Group, Inc. (CRD # 35528) from November 2002 to January 2008 and First Allied Securities, Inc. (CRD # 32444) from February 2002 to December 2002.
FINRA’s Allegations against Brett Briggs
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 17, 2020, Mr. Briggs consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between December 2013 and July 2017, [Mr.] Briggs served as the designated Office of Supervisory Jurisdiction (OSJ) Supervisor and OSJ Manager (collectively, OSJ Supervisor) of the Brentwood OSJ office of Financial West”;
- “In these capacities, [Mr.] Briggs was responsible for supervising the Brentwood registered representatives, including four representatives who have since been barred for trading misconduct”;
- “Financial West’s written supervisory procedures (WSPs), among other things, required [Mr.] Briggs, as the OSJ Supervisor, to review the transactions of these four representatives to ensure the suitability of the transactions they recommended to customers”;
- “Between December 2013 and July 2017, when [Mr.] Briggs was the OSJ Supervisor for Financial West’s Brentwood OSJ office, he failed to reasonably supervise the four representatives notwithstanding multiple red flags that should have prompted greater scrutiny of the representatives’ trading activities by [Mr.] Briggs, but did not”;
- “Despite the red flags, [Mr.] Briggs failed to further investigate the potential trading misconduct which was suggestive of both excessive trading and qualitatively unsuitable recommendations involving options, low-priced securities, and Non-Traditional ETPs”;
- “As the OSJ Supervisor, [Mr.] Briggs profited from the excessively traded, and qualitatively unsuitable transactions executed by the four representatives in the nine customer accounts through his receipt of commission overrides and ticket credits”; and
- By virtue of his actions, Mr. Briggs violated NASD Rule 3010(a) and FINRA Rule 3110(a), regarding supervision, FINRA Rule 2360(b)(20), regarding duty to supervise (options) and FINRA Rule 2010, regarding principles of trade and standards of commercial honor.
FINRA Sanctions Brett Briggs
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s November 17, 2020 AWC also indicates that Mr. Briggs consented to the following sanction(s):
- Barred from association with any FINRA member in any principal capacity;
- A fine of $20,000.00; and
- Partial restitution in the amount of $52,432.81, plus interest.
Brett Briggs has A History of Customer Complaints
In addition to Brett Briggs being barred from the securities industry by FINRA for failure to supervise, FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Briggs reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not limited to:
- On April 21, 2006 a customer initiated arbitration was filed naming Mr. Briggs as a respondent for alleged actions that occurred while he was associated with First Allied Securities. The customer alleged unauthorized trading, negligence, breach of fiduciary duty, churning, suitability, fraud and failure to supervise. The customer further alleged damages in the amount of $1,500,000.00. On May 21, 2006 Mr. Briggs was ordered to pay the customer $2,528.00 in compensatory damages.
- On June 22, 2009 a customer initiated arbitration was filed naming Mr. Briggs as a respondent for alleged actions that occurred while he was associated with The Shemano Group. The client alleged damages in the amount of $100,000.00. On November 19, 2009 the matter was settled in the amount of $12,000.00.
If you or someone you know has or had a brokerage account with Brett Briggs and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
